Freddie Mac: Rates fall to lowest level in 2014

Weak economic growth keeps rates down

Mortgage rates fell once again and this time to the lowest level since Nov. 7, 2013, as the economic growth for the first quarter came in well below market expectations.

The latest Freddie Mac Primary Mortgage Market Survey recorded an average 30-year, fixed-rate mortgage of 4.21% for the week ending May 8, continuing to fall from 4.29% a week ago, but up from 3.42% a year earlier.

The 15-year FRM fell to 3.32%, compared to 3.38% a week ago and 2.61% in 2013.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage remained frozen at 3.05%, but up from 2.58% last year.

The 1-year Treasury-indexed ARM declined to 2.43% this week, compared to 2.45% last week and 2.44% for the same period in 2013.

“Mortgage rates continued moving down following the decline in 10-year Treasury yields after a dismal report on real GDP growth in the first quarter,” Frank Nothaft, vice president and chief economist with Freddie Mac, said.

“Meanwhile, the economy added 288,000 jobs in April, the largest since January 2012, and followed an upward revision of 36,000 jobs for the prior two months. Also, the unemployment rate fell to 6.3%.”

Meanwhile, Bankrate posted a drop in mortgage rates too, with the 30-year, FRM decreasing to 4.37% from 4.44%.

The 15-year, FRM fell to 3.45%, rising from 3.51% last week, while the 5/1 ARM dipped to 3.34% from 3.35% a week prior.